What does 1st mortgagee mean?
First Mortgagee means the holder of any First Mortgage.
What does being a lender mean?
A lender is an individual, a public or private group, or a financial institution that makes funds available to a person or business with the expectation that the funds will be repaid. Repayment will include the payment of any interest or fees.
What does 1st lien position mean?
A first lien is the first to be paid when a borrower defaults and the property or asset was used as collateral for the debt. A first lien is paid before all other liens. A bank that holds the first mortgage on a property has the first lien.
What is the difference between first and second mortgage?
As the name implies, a first mortgage is a mortgage in the first lien position on the property that is secured by the mortgage. … A second mortgage, also known as a piggyback mortgage, is done at the same time as the first mortgage and takes the second lien position on the property.
What does first mortgage P&I mean?
With mortgages, “P&I” refers to principal and interest. This is the portion of your monthly mortgage payment that goes toward paying off the money you borrowed to buy your home.
How does the lender work?
A borrower finds a home they would like to purchase. … The lender evaluates the borrower’s financial situation, as well as the risk they present (how likely they are to repay or not repay their loan). This information is used to set their maximum loan amount and the interest rate they’ll be charged to borrow the money.
How does the lender get paid?
Because a Mortgage Broker essentially does the job of a banker, lenders are happy to pay a commission in exchange for a successful loan application – meaning the customer doesn’t have to pay them anything. There are two way a Mortgage Broker gets paid: upfront commission and trail commission.
What does it mean to have a credit score of 500?
A 500 credit score falls into the bad range. You’ll have trouble getting credit, but your score can recover. A 500 credit score is in the bad credit score range. Your credit score determines whether you qualify for financial products, like credit cards and car loans, and what interest rate you might pay.
What does first position mean loan?
When a lender is in a first lien position, it means that they are in the first or priority position to benefit from any liquidation of the collateral which secures the loan, in the event that the loan is in default and the property is to be sold.
Can a home equity loan be a first lien?
A borrower who owns his property free and clear may decide to take out a loan against the home’s value. In this case, the lender making the home equity loan is considered a first-lien holder.
Is first lien secured?
Within secured debt, there is the first-lien debt, which is the highest-ranking debt. First-lien debt refers to a pledge of certain assets. Pledged assets are usually transferred to the lender from the borrower to secure the debt. … When the debt has been repaid, the pledged asset is transferred back to the borrower.